Mich. colleges, universities face more state budget cuts

By Pete Nichols (Last updated: 08/28/09 6:30pm) MSU faces a cut of more than $5 million in state funding this year and could take a decrease of more than $13 million in the current fiscal year.

Instead of receiving the $13 million this year, the money could be paid to the university in the 2008 fiscal year, which begins Oct. 1.

The cut and delayed payment are part of a plan created by Gov. Jennifer Granholm and state legislators Friday.

The plan was established to resolve the state's $800 million budget deficit. It mainly consists of cuts to state programs, which include funding for the state's universities and colleges.

The cuts to higher education were a quick financial fix, not an economic strategy for the future, university spokesman Terry Denbow said.

"The disinvestment action Friday was indicative of a core problem in our state," he said. "Higher education is deemed more an expense than an investment."

Reducing funding could impact the quality of education available at MSU, and the resulting effects would reach from the classroom to external programs, Denbow said.

The cuts could hurt the state rather than help it, Denbow said. The quality of Michigan's higher education attracts businesses, he said.

"The economic impact of MSU is over $3 billion annually," Denbow said. "Why anybody would withdraw investment in such an enterprise would confuse a potential locator in the state."

The state cannot afford to cut higher education funding any further, said Rep. Mark Meadows, D-East Lansing, who voted against the compromise.

"It screws higher education," he said.

The solution to Michigan's budget problem lies in increasing revenue through taxes, rather than continuing to cut from programs, he said.

The cuts from education were not made lightly, said Greg Bird, spokesman for the Office of the State Budget.

"We agree that higher education requires more investment, which is why revenues must be part of the solution for next year's budget," he said. "Unfortunately, cutting the increase to higher education was one of the very tough compromises made to resolve the budget problem."

No one favored the cuts to higher education, but cuts had to be made in order to balance the 2007 budget, said Matt Marsden, spokesman for Senate Majority Leader Mike Bishop, R-Rochester.

"We were in a crisis situation and had to balance the budget," Marsden said. "These are tough decisions, tough calls."

While tax cuts are still a possibility for next year's budget, Bishop said governmental reforms are a better answer, according to Marsden.

Taxes and reforms notwithstanding, students showed concern regarding the cuts.

"I'm sure there were other places they could have cut money from," said Hannah Loncharich, an art history and visual culture senior.

"I don't know where - I'm no politician, but I think there are better ways they could have handled it rather than cutting education funds."

Pete Nichols can be reached at nicho261@msu.edu.

Originally Published: 05/30/07 12:00am